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European luxury shares jumped Thursday after Cartier parent Richemont reported record quarterly sales, lifting investor hopes that the high-end sector is finally recovering from a slump caused by weak Chinese demand.

The Swiss company said its third-quarter sales ending Dec. 31 rose 10% year-over-year to 6.15 billion euros ($6.32 billion). Strong sales at its jewelry brands—Buccellati, Cartier, Van Cleef & Arpels, and Vhernier—offset a decline in watch sales.

Richemont said that it registered double-digit growth in the Americas, Europe, Middle East & Africa, and Japan, and a "slower decline in Asia Pacific despite still challenging demand in China." Sales in Mainland China, Hong Kong, and Macau tumbled 18%.

China has been a major driver of luxury brands' sales in recent years, but its economic downturn has weighed on spending by domestic consumers.

Burberry, LVMH Among Luxury Stocks Jumping on News

Shares of Burberry, the British maker of trench coats; LVMH, the maker of Louis Vuitton handbags and other luxury goods ; Gucci owner Kering; and Birkin handbag maker Hermes all jumped on the news.

Richemont shares rose 15% in Swiss trading, while Burberry was up more than 5% in London. In Paris, LVMH, Kering and Hermes were all up at least roughly 5%.

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